This article is posted on September 3, 2014 at the official website of the Ministry of Agriculture, Food and Rural Affairs, Republic of Korea in order to prepare for rice import tariffication starting 2016.

- The investments on social overhead capital such as readjustment of arable land, expansion and maintenance of irrigation facilities, drainage improvement for constantly flooded areas and water development have been made, amounting to 1 trillion 310 billion Korean won yearly (total 26 trillion 270 billion Korean won).

* Income of professional rice farmers: 14,224,000 Korean won / household (1995) → 22,430 (2005) → 37,958 (2013). The data shows that economies of scale reduce manpower cost and cost for trusted farming and thus, cause a decrease in direct production cost such as fertilizers, chemicals, labor costs excluding rent and interest.

* Direct production cost for farm households with more than 5 ha of cultivation area is 364,000 Korean won, which is 19% lower than the average of the entire farm household (447,000 Korean won) and 29 % lower than that of those with 0.5 ~ 1 ha of cultivation area (In 2013, National Statistical Office).

- Promotion of field management system: bundling up farm households by 50 ha in order to achieve economies of scale in production and distribution and to promote effectiveness

* From 2009 to 2014, 158 places were selected and joint seeding culture(共同育苗場) and wide pest prevention machineries(廣域防除機) were being allocated.

• Stability of income and effectiveness of distribution by food policy reform in 2005

- The rice purchase system which functioned to support the price and to reserve the stocks was being abolished.

- Instead, in order to stabilize farmer’s income, policies such as rice income direct payment program (fixed∙variable), target price system (目標價格制), and public stock holding program for the purposes of food security have been implemented.

* When the market price falls under the aimed price, 85% of the difference will be preserved.

* In 2010, harvest price of rice dropped to 138,231 Korean won / 80kg however farm households received 165,305 Korean won at average which is 97% of aimed price (170,083 Korean won / 80kg) at the time.